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Council advances ordinance changes, including lodging-tax collection shift to Department of Revenue
Summary
On first reading the council approved changes to peddler/solicitor licensing, consumption/display rules, and permissible land uses, and considered a lodging-tax ordinance that would shift collection oversight to the Minnesota Department of Revenue; Attorney Klun said she will clarify a council question about a percentage in the lodging-tax text.
The Ely City Council on May 19 advanced several ordinance changes on first reading and by roll call.
City Attorney Klun presented Ordinance 401, which moves annual vendor license dates to follow the calendar year and adds flexibility for approving public locations. The council approved the first reading by roll call. Klun said the change allows "additional public locations to be approved by resolution."
The council approved the first reading of Ordinance 402, amending Chapter 5, Section 5.70 regulating consumption and display to align with state statute. Attorney Klun said the language was revised to coincide with state law.
On Ordinance 403 (amending permissible and conditional uses in Chapter 11), the council approved the ordinance and scheduled a public hearing for June 2, 2026, at 5:15 p.m. Council member Bisbee asked whether halfway houses differ from rooming houses and Attorney Klun said she would research the distinction before the next meeting.
The council also approved Ordinance 404, a replacement of Chapter 6, Section 6.33 (Lodging Tax), which would change lodging-tax collection so payments are remitted to the Minnesota Department of Revenue at the current 3 percent rate. Council member Roose raised a question about Section 5.2 of the draft that appears to allocate 95 percent to fund costs of collection; Roose and Attorney Klun agreed Klun would review that language and bring any necessary corrections for the second reading.
All four ordinance items carried on roll calls recorded in the minutes.
Provenance: ordinance items introduced SEG 025 (Ordinance 401) and continued through SEG 027 (Ordinance 404).
